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Nykaa

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Nykaa
Company typePrivate
IndustryInternet
Founded2014
FounderFalguni Nayar[1]
HeadquartersMumbai, Maharashtra, India
Area served
India
Key people
Adwaita Nayar
Reena Chabbra
ServicesE-commerce
(Online shopping)
WebsiteNykaa.com

Nykaa is a Mumbai-based multi-brand beauty retailer selling cosmetic and wellness products. Founded by Falguni Nayar, Nykaa began as an online retailer in April 2012 and opened its first physical retail store at T3 Terminal, Indira Gandhi International Airport in November 2015.[2]

History

The founder of Nykaa, Falguni Nayar is a former Managing Director of Kotak Mahindra Capital Company.[3] The company raised money through multiple rounds of funding. In July 2014, it raised INR 20 crore in funding from private investors and raised around INR 60 crore in Series B funding in October 2015 led by TVS Capital. Nykaa closed its last round of funding by raising INR 104.3 crores led by Max I India post which VC firm Max Ventures and Industries acquired a 2% stake in online cosmetic and wellness brand.[4]

Operations and services

Nykaa is an e-commerce website offering beauty and wellness products from all the leading brands such as Lakmé, Kaya Skin Clinic, L'Oréal Paris and many more. [5][6] Nykaa follows an inventory based model with warehouses in Mumbai, New Delhi and Bangalore. Nykaa has its offline presence in 17 stores and expanding. It claims to have over 850+ curated brands and 35,000 products. Nykaa’s core target audience is the 22-35 age group.[7] Along with this Nykaa as two offline store formats – Nykaa Luxe and Nykaa On Trend. The Luxe format features Indian and international luxury beauty brands along with Nykaa Beauty, the in-house collection of beauty products. The On Trend format is the first of its kind in the market with products curated by category basis their popularity.[8] In March 2016, Nykaa introduced private labeled products in the bath and body care category.[9]

Funding

Till date, Nykaa has raised a total of $79.02 million funding[10]. The details of all individual funding rounds are listed as:

  • Series A: 3 July 2014, $3.4 million from private investors and HNIs.[11]
  • Series B: 5 October 2015, $9.5 million from Marico Industries chairman, Harsh Mariwala, Atul Nishar (Hexaware Technologies founder and chairman), Dalip Pathak (former India and Europe head of Warburg Pincus) and Michael Carlos (ex- president of Swiss fragrance maker Givaudan).[12]
  • Series C: September 12 2016, $12 million from Hero MotoCorp MD Sunil Munjal and the Mariwala family (Marico).[13]
  • Series D: 23 April 2018, $11.32 million from existing investors including Sunil Munjal’s family office, Marico’s Mariwala family office, Dalip Pathak, a special limited partner at Warburg Pincus, along with other existing and new high net worth individuals.[14]
  • Secondary Market: 23 April 2018, INR $14.34 million as a part of above Series D round.[15]
  • Series D: 14 May 2018, $24 million from a few of the early stage investors including Sunil Kant Munjal, Chairman, Hero Corporate Service Private Ltd, Family Offices of Harsh Mariwala and Dalip Pathak, private equity veteran. [16]
  • Secondary Market: 5 September 2018, $15.72 million from consumer-focused private equity manager’s Lighthouse India Fund III.[17]

Private label

Nykaa launched its collection of in-house beauty products in 2015 with nail enamels.[18]

Team

Adwaita Nayar, Falguni Nayar's daughter, is the Chief Operating Officer of the offline retail chain. She's an alumnus of Harvard Business School. At the helm of Nykaa’s private label is Reena Chabbra who has spent over two decades in the beauty industry in India. She worked previously with Lakmé and Kaya Skin Clinic.[19]

Partnerships

Nykaa collaborated with Femina to host the ‘Nykaa.com Femina Beauty Awards’ in 2015 and 2016. The award function was created to highlight the best products and brands in the hair, makeup, fragrance, and skin categories in the Indian market.[20][21]

Corporate social responsibility

Nykaa raised funds for Project Nanhi Kali on International Women’s Day, 2015. Project Nanhi Kali is an Indian NGO that provides primary education for underprivileged girls in India. [22]

Criticism

Nykaa has been criticized for its late delivery services, bad customer executive behaviour and non-transparent refund policies. [23] Nykaa doesn't have any appellate authority to look after customer issues. Customers have given humongous negative feedback regarding its customer executive services.[24][25]

Awards and events

Business Today featured Nykaa's founder Falguni Nayar in The Most Powerful Women in Business 2017.[26] Nayar also won the ‘Woman Ahead’ award at the Economic Times Startup Awards 2017. [27]

Nykaa has been a partner with Femina since 2014 in presenting Femina Beauty Awards for beauty products based on votes from Nykaa’s customers and Femina's readers. [28]

See also

References

  1. ^ "Shades in Beauty Space: Falguni Nayar". Economictimes.indiatimes.com. Retrieved 7 March 2013.
  2. ^ "Nykaa Story". Nykaa.com. Retrieved 15 June 2015.
  3. ^ "Falguni Nayar: The beauty entrepreneur". Livemint. 24 March 2017.
  4. ^ "Max Ventures and Industries acquires 2% stake in Nykaa". Timesofindia.indiatimes.com.
  5. ^ "Make-Up Haul: The Best Products That Are Only Available At Nykaa". Idiva.com.
  6. ^ "Nykaa decks up to woo Indian beauty market with more products and services". Economictimes.indiatimes.com.
  7. ^ "Nykaa And The Art Of Retailing: Trending Online Beauty With 10K Orders A Day". Inc42.com. 29 May 2017. Retrieved 29 June 2018.
  8. ^ "Nykaa to expand offline presence". Deccanherald.com.
  9. ^ Verma, Shrutika (9 March 2016). "Nykaa looks to raise Rs 100 crore, expand private label offerings". Livemint.com. Retrieved 29 June 2018.
  10. ^ "Lighthouse Invests $15.72 Mn In Nykaa, Existing Investor TVS Shriram Growth Fund Exits". Inc42 Media. 5 September 2018.
  11. ^ "Nykaa raises $3.4 million". Business Standard. 7 July 2014.
  12. ^ "Nykaa Secures $9.5 Mn In Series B From HNIs". Inc42 Media. 5 October 2015.
  13. ^ Aparna, Mishra (12 September 2016). "Hero MotoCorp MD Sunil Munjal And Others Invest $12 Mn In Online Beauty Store Nykaa". Inc42 Media.
  14. ^ "Nykaa Ready To Expand Its Retail Footprint With $24 Mn Series D Funding". Inc42 Media. 14 May 2018.
  15. ^ "Online Beauty Marketplace Nykaa Grabs $11.32 Mn Funding At $453 Mn Valuation". Inc42 Media. 23 April 2018.
  16. ^ "Nykaa Ready To Expand Its Retail Footprint With $24 Mn Series D Funding". Inc42 Media. 14 May 2018.
  17. ^ "Lighthouse Invests $15.72 Mn In Nykaa, Existing Investor TVS Shriram Growth Fund Exits". Inc42 Media. 5 September 2018.
  18. ^ "Nykaa expects private label revenue contribution to double in 2017-18". Livemint.com.
  19. ^ "Falguni Nayar: The beauty entrepreneur". Livemint.com.
  20. ^ "Femina Beauty Awards". Femina.in.
  21. ^ "Nykaa and Femina host the Nykaa Femina Beauty Awards in Mumbai". Timesofindia.indiatimes.com.
  22. ^ "How Nykaa used Digital Marketing". Digiperform.com.
  23. ^ http://bs.infokriti.co.in/video/id_mqzL71VpBg0. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help); Missing or empty |title= (help)
  24. ^ "Nykaa". www.facebook.com. Retrieved 27 August 2018.
  25. ^ "What could be the reason for Nykaa.com's absolutely unprofessional and pathetic customer service? - Quora". www.quora.com. Retrieved 27 August 2018.
  26. ^ "The Most Powerful Women In Business 2017". Businesstoday.in. Retrieved 27 October 2017.
  27. ^ "ET Startup Awards 2017: ET-Facebook woman ahead award goes to Falguni Nayar of Nykaa". Economictimes.indiatimes.com.
  28. ^ "The third edition of Nykaa.com Femina Beauty Awards 2017". Timesofindia.indiatimes.com.
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